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Aviation History
1961
1961 - 1459.PDF
FLIGHT, 5 October 1961 563 markets are of real importance in their own right, but because atcurrent fare levels there is not enough traffic to fill subsonic jets, let alone supersonic ones. Any suggestion that there should be aBritish "Project Horizon" may well produce an inward groan at the thought of yet another committee. The slow, peaceful passageof committees across the contemporary British political scene, like contented cattle moving across a landscape, serves to induce securityand complacency. Certainly in too many matters—for instance, heliports for London and adequate long-haul terminal facilities (andeven car parks) for Heathrow—Government policy has been charac- terized by a pastoral timelessness more in accord with the vanishedworld of before 1914 than the era of Gagarin and Titov. We tend to wait too much on the decisions of other nations, it has been saidwith some justification. Yet our most formidable competitors, America, France and Russia, believe above all in pace—in settingtheir own pace without too much regard for supra-national ideals. The Caravelle's sales record in particular should remind us thatunless a real sense of urgency and of pace can be instilled into the Ministry's aviation policy making we run a grave risk of beingovertaken by France within ten years as the prime European manufacturers of commercial aircraft. M.J.H. RIDDLE'S NEW MIAMI^CARGO TERMINAL RIDDLE AIRLINES plans to establish what it describes as"the most modern, the largest and the most completelyautomated air freight terminal in the United States" at Miami International Airport, and has just signed a lease with the DadeCounty Port Authority for two hangars and an office building formerly occupied by the USAF. The two hangars cover an area of16 acres, and one is large enough to house a DC-8 or 707; the airline's executive offices and maintenance base will be housed inthis new terminal. Various automated cargo handling systems are being studied byRiddle, including a system developed by its own technicians, and these could be incorporated in the new cargo centre. Plans for thelatter will be completed prior to any effective date of the impend- ing merger of Riddle and ASA International Airlines Inc (AeroviasSud Americana Inc). A CAB examiner has recommended approval of this merger, the reasons for which were outlined in Flight forJuly 6, and which will result in through all-cargo service from Boston and Chicago in the north to Lima in the south. Riddle isnow operating 10 DC-7Fs, seven Argosies, 28 C-46s and one DC-4. NORTHEAST TO MERGE? THAT Northeast has been trying to conclude a merger agree-ment with one of the US trunk carriers has been evident overthe last 12 months. It was originally thought that TWA would absorb Northeast, but negotiations did not lead to an agreement. The latest carriers to propose a merger are Mohawk, Eastern andNational, these three airlines jointly absorbing Northeast. The carriers would take over Northeast's routes as follows:Mohawk would absorb the New England route network, and Eastern and National the Florida routes. Northeast has put before the CAB an application to continueoperating to Florida on a permanent basis, which National and Eastern are opposing. It is reported that the joint merger proposalcontains a clause stipulating that the application before the CAB be withdrawn. Northeast at present operates high-frequency services betweenBoston, New York, Philadelphia and Washington, and the route network stretches from Montreal in the North to Miami in thesouth. The main units of the fleet are 11 Viscounts, ten DC-6Bs and six Convair 880s (leased from General Dynamics). Under theproposed agreement Mohawk would acquire the Viscounts and DC-6Bs, while Eastern would take over three of the Convair 880s.Mr J. W. Austin, Northeast's president, is reported to have said that he expects other proposals to be submitted before any decisionis taken by his company's shareholders. US airline mergers, even though agreement is reached by theparties concerned, must be approved by the CAB; but it is signifi- cant that one of the points made in "Project Horizon," the recentFAA report, is that the CAB should give "prompt and sym- pathetic attention" to mergers necessitated by multiple competition. Footnote The three carriers bidding for Northeast haveoffered to Northeast stocks valued at approximately $3m, warrants for additional stocks valued at $10m, and $10m in convertiblestocks for assets. Chief J. 0. Fadahunsi, chairman of Nigeria Airways, signs at Schiphol a contract for the purchase of five Fokker Friendship 200s to be delivered in December 1962 and January 1963. In the centre is Mr Frits J. L Diepen, Fokker's commercial director, and on the right is Mr Th Stevens of Fokker's export department NOW THE "GUADALAJARA CONVENTION" THE conference on private air law called by the InternationalCivil Aviation Organization in Guadalajara, Mexico, has approved a new convention which supplements the WarsawConvention governing the liability of air carriers. The new convention relates to the international carriage by airperformed by a person other than the "contracting carrier"; that is, the Guadalajara Convention is designed to settle liability problemsconcerning international carriage by air of passengers, baggage and cargo arising when an aircraft is chartered or hired with its crewor when any other arrangements are made between carriers which result in carriage being performed by someone other than theperson who entered the contract. The old Warsaw Convention does not contain particular rules which cover the foregoing situa-tions. The new convention, based on a draft prepared by the ICAOlegal committee, contains 10 articles on liability as well as additional clauses which establish the procedure for signature of the Conven-tion, accession and denunciation. The final clause provides that no state may make a reservation in becoming party to the Convention. On September 18 the Convention was opened for signature bystates represented at the conference. It will be deposited with the Mexican government and remains open for signature until fivestates have deposited their instruments of ratification with the Mexican Government, at which time it will come into force. Itwill then be open for accession by other states. The Convention, entitled "Convention, supplementary to theWarsaw Convention, for the unification of certain rules for the international carriage by air performed by a person other than thecontracting carrier," specifically limits signature or accession to those states which are members of the United Nations or any ofits specialized agencies. JAMAICA GOES IT ALONE JAMICA'S withdrawal from the West Indies Federation callsfor a completely fresh approach to the formation of a West Indian national airline, just as it calls for a fresh approach to theFederation itself. The new nation, due to become independent in October 1962, may survive as an Eastern Caribbean Federationwithout Jamaica. But whether its proposed national airline, built on BWIA, can succeed without Jamaica is much more open to doubt. Jamaica was the rich uncle of the Federation, and of the newairline, for whom a new rich uncle has to be found. A ray of hope emerges from a recent decision by the Trinidad Government,prior to Jamaica's secession, to make a bid for BWIA. It is believed that this is the subject of present negotiations between BOAC—the proprietor of BWIA—and the Trinidad Government, though talks arranged in Trinidad for October 1 are understood tohave been postponed. One of the matters to be discussed, no doubt, is the question of BWIA's value. BOAC have estimatedthat a proper price for a 51 per cent share of BWIA would be approximately £2.8m—BWIA's assets at March 31, 1960, beingmade up as follows (round figures): equity, debentures and loans, £1.26m; Viscounts' book value, £1.08m; accumulated losses, £3.21m.Total capital invested in BWIA at March 31, 1961, was estimated at £5.55m. The changed air transport situation is politically serious; airservices are, as BWIA have said, "essential to the very existence
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